The federal government is extending the wage subsidy program until the end of August, Prime Minister Justin Trudeau announced Friday.

Trudeau also said the government will consider relaxing the program’s eligibility threshold of a 30-per-cent revenue drop — something Canada’s small business community has advocated for weeks. He said “as businesses start up, needing a decline shouldn’t be a barrier to growth.”

Morneau also said the Liberals intend to propose legislative amendments to the CEWS that would provide flexibility for employers who did not regularly employ workers in early 2020 and would therefore struggle to meet eligibility requirements.

Changes also intend to expand access to the program for corporations formed on the amalgamation of two companies, and to “better align” the treatment of trusts and corporations in eligibility.

Morneau, speaking to reporters on Friday afternoon, could not offer a revised cost for the CEWS, saying industry has to be consulted before any estimate could be made. He said all federal COVID-19 relief measures now total $151.7 billion.

In a statement, the Canadian Federation of Independent Business said it is “very pleased” with Friday’s announcement, and that an extended and simplified wage subsidy “will be an important measure in helping Canadian small businesses get back to health.”

“If properly designed, this will be a major relief for tourism and other sectors who are expecting a very soft summer,” said president and CEO Dan Kelly.

Trudeau said Ottawa will work with business and labour leaders on any further adjustments to the program.

Kelly added that the 30-per-cent revenue test was “one of the reasons the take up of the program has been far less than expected and will cause a particular problem as we move to the recovery phase.”

In the first two weeks after launching, Ottawa has received 123,642 applications for the wage subsidy program, with 95 per cent of claims valued lower than $100,000. An estimated 1.7 million workers will have their wages subsidized through the program.

Instead, Ottawa has so far paid out $35.88 billion in Canada Emergency Response Benefit (CERB) payments, more than the $35 billion it estimated the program would cost. Ottawa had anticipated four million applicants for the program, which provides support for a 16-week period between March and October.

Nearly 14 million CERB applications representing almost eight million Canadians have been received to date.

Provincial governments have only started to relax its restrictions on workplace closures this month, which could provide a boost to CEWS subscriptions as more businesses are able to resume operations again.

Trudeau said while millions of Canadians still need the CERB, an economic recovery that sees more Canadians rehired should see more people benefiting from the wage subsidy than from the CERB.

Meanwhile, Canadians who have yet to file their taxes will still be able to receive payments of the Canada Child Benefit and GST/HST credit until the end of September.

In March, the federal government shifted its April 1 deadline for Canadians to file their 2019 tax returns to the beginning of June. Payments for those who haven’t yet filed their taxes will be based on 2018 returns.

Students and recent graduates can also apply for the Canada Students Emergency Benefit beginning today.